Terry's has admitted its flagship York factory will close down for two weeks this year because of a downturn in demand.

The closure follows the announcement of 47 redundancies at the Bishopthorpe Road-based company in February.

Terry's management told the Evening Press yesterday that the factory's closure this week was instead of the usual week's break in business following the spring bank holiday.

But members of staff said they had been told it was an additional shutdown.

"Terry's has told its employees the factory will be closed this week as well as spring bank holiday due to current market conditions," said one.

"Staff must use their annual holiday entitlement for this week."

A spokeswoman for Terry's today admitted: "There has been a little bit of confusion, for which I apologise.

"It was thought that the shutdown had been switched from the spring bank holiday week, but in fact this year there is an additional shutdown. It is not intended that this additional shutdown will be permanent, and next year we will go back to having only one week.

"Obviously this extra closure fits in with our production requirements."

February's redundancy announcement was said to be in response to an increasingly competitive marketplace and the need to focus resources on those confectionery brands with the greatest growth potential.

The spokeswoman said that had led to a number of changes.

"We have been making a number of changes which are necessary from time to time," she said.

"When we made the redundancies we said that we had to respond to market requirements and we had to make working arrangements more flexible. This is part of that.

"All staff have been consulted and we do not plan to make the additional shutdown permanent."

A spokesman for the General, Municipal and Boilermakers' Union said: "We haven't had any complaints about this week's shutdown and I do not consider it controversial."

Updated: 10:44 Saturday, April 06, 2002